Star Entertainment Group confirmed Monday it had entered into a binding term sheet with US casino operator Bally’s Corp to take control of the company as part of a US$300 million (US$180 million) deal.
The term sheet, comprising a multi-tranche convertible note and subordinated debt instrument, will see Bally’s assume convertible notes convertible to 56.7% of Star’s issued share capital.
The last-ditch effort to avoid falling into administration will see Star receive AU$100 million on or before this Wednesday 9 April – allowing it to reach its short-term obligations, plus another AU$200 million following a shareholder vote.
